Berri Club calls in administators

Tim Clifton from administration firm Clifton Hall was appointed on Monday, February 12.

The Berri Club was established in 1969 and has sponsored local sporting clubs and events, becoming a fixture at Berri with its distinctive palm-lined grounds on the western approach to Berri.

The club's 15 casual workers have had their employment terminated.

Administrator Tim Clifton said the decision to appoint administrators was the only option left to the club because of its poor financial position.

"An assessment must be made of what is in the best interest of the creditors of the association (club) and the community at large," Mr Clifton said.

It is understood the club has significantly reduced its trading turnover during recent years.

"Unfortunately it hadn't been trading particularly well in recent time and they made the decision," Clifton Hall senior manager Daniel Lopresti told the ABC's Sallese Gibson.

The club has financial obligations to the ANZ Bank, which is its only secured creditor.

Unsecured creditors include the club's employees.

At its peak the Berri Club had about 600 members and has undergone several redevelopments in the past decade, including the creation of a beer garden and new bar area.

It also includes a gaming and dining area.

The ABC understands that nine community members usually sat on the board.

The administrators will investigate the club's financial position.

"Our immediate concern has been securing the assets of the club and trying to identify the financial position of it and looking toward a sale," Mr Lopresti said.

"In our role as administrators we will be looking at where the money has been spent and gone."

Club manager Bill Konadaris has been retained by the administrators and was contacted by the ABC but did not wish to speak publicly.

"Unfortunately we have had to terminate all the staff and they will receive correspondence from us, unfortunately not all of them were around when we visited the place yesterday," Mr Lopresti said.

"We've retained the general manager to assist us in dealing with any local issues."

Employees and other creditors will be forced to wait for the club's assets to be liquidated before learning whether they will receive any outstanding money.

"The majority of the staff were casual as I understand it, so there may not be much by way of annual leave and entitlements that would apply to full time or permanent staff but certainly there would be some superannuation owing," Mr Lopresti said.

"Depending on what recovery we could make from the sale of the business that may well get paid."

It remains unclear whether the club will again trade as a community-run asset or whether administrators will sell it to private interests.

"Whether it remains as a community-run club or not that will depend on the community and whether they want to reinvest money into it and set up a new board," Mr Lopresti said.

"Alternatively it is going to go to a private enterprise and that might be the way it is going and certainly we think there might be some interest out there."

The first meeting of creditors will be held on Friday February 22 at 12pm at the Berri Club.